Tax Day is April 18.
In 2023, taxpayers will be required to file their federal income tax returns by April 18 — or file for an extension. For those who own their own businesses, are self-employed or need to take other special tax considerations into account, however, there are plenty of other important dates to remember. Keep reading to learn about them, then mark them off on your calendar.
January 17: Estimated fourth quarter taxes are due for the self-employed.
If you’re self-employed or didn’t pay your taxes through W-4 tax withholding, you’ll need to make estimated quarterly tax payments by Jan. 17, 2023. Generally, this applies to those who will owe more than $1,000 in taxes when they file their returns.
Late January: Tax season begins.
On Jan. 24, 2022, the Internal Revenue Service began accepting and processing returns from tax year 2021. The IRS hasn’t released an official date it will begin accepting tax year 2022 returns, but planning to file early can be advantageous. The earlier you file your taxes and start the process of receiving your refund, the more it boosts the time value of that money, Robert Gorman, certified financial planner and founding partner at Apollon Wealth Management in Mount Pleasant, South Carolina, says.
Feb. 15: Reclaim exemption from withholding.
If you used Form W-4 to claim you were exempt from federal income tax withholding in 2022, you must file a new W-4 on Feb. 15 to extend your exemption into 2023.
April 3: Turned 72 in 2022? Make your first required minimum distribution.
If you turned 72 in 2022, you must take your first required minimum distribution from your traditional IRA or 401(k) by April 3, 2023. Note that this does not apply to Roth IRAs. While the deadline would normally be April 1, that date falls on a Saturday in 2023, so it’s now Monday, April 3. Taking RMDs is important to avoid penalties.
“It’s very important to stay on top of those because those penalties are probably some of the steepest that the IRS can enforce,” Travis Schaat, certified public accountant, chief financial officer and senior financial advisor at Perspective Wealth Partners in Boise, Idaho, says.
April 18: Tax Day is here.
Though it generally falls on April 15, the deadline to file your federal tax return is later in 2023 because Washington, D.C., observes Emancipation Day. By the end of the day on April 18, taxpayers must file their federal returns.
April 18: File Form 4868 to request an extension.
If you’ll miss the April 18 tax deadline, you’ll need to file Form 4868 for an extension. Even if you don’t owe money, you must let the IRS know you won’t be filing by the deadline. You’ll then have until Oct. 16, 2023, to file your federal tax return.
You still need to pay your quarterly taxes, though. “The payment of estimated taxes, that’s not extendable. Even though you might extend your actual tax return, you still need to have a pretty good idea of where you might stand and make sure those taxes are paid,” Schaat says. “Otherwise, you could be liable for some pretty hefty underpayment penalties.”
April 18: First quarter estimated tax payment is due.
If you own a small business or are self-employed and earned more than $400 in the tax year, you’ll need to make quarterly estimated tax payments. The IRS looks at your estimated liability during certain windows of time, and if you don’t make payments during those windows, you could be subject to penalties, Schatt says.
April 18: Last day to contribute to an IRA or HSA for 2022.
If you haven’t hit the maximum limits on your IRA or health savings account for 2022, you can always contribute more (up to the annual contribution limit) until April 18. For IRAs, that limit is $6,000, or $7,000 if you’re age 50 or older. For HSA plans, the total contribution limit is $3,650 for those with self-only health care coverage and $7,300 for those with family health care coverage.
June 15: Second quarter estimated taxes are due.
For those who don’t have their federal income taxes withheld, such as small business owners or self-employed workers, estimated quarterly taxes are due June 15. Use your 2022 taxes as a starting point for calculating the amount you owe, or use your annual gross income and any deductions or credits you may take for the year.
Sept. 15: Third quarter estimated taxes are due.
Those who are self-employed or own a small business should put Sept. 15 on their calendars, which is when third quarter estimated taxes are due. If you became self-employed during the year, this could be your first payment. Those who don’t expect to earn more than $1,000 in the 2023 calendar year, however, may not need to pay quarterly taxes.
Oct. 16: File extended 2022 tax return.
If you filed Form 4868 for an extension, your 2022 federal income tax return will be due Oct. 16. You’ll need to file Form 1040 or Form 1040-SR and pay the taxes you owe, plus any interest and penalties if applicable.
Dec. 31: Take any required minimum distributions.
After you take your first RMD, you’ll need to take any subsequent ones by the end of the calendar year. If you delay the 2022 RMD until 2023, you’ll need to take the 2023 RMD by Dec. 31, 2023, Schaat says. “The delay option is only applicable for the first year an individual is subject to required minimum distributions.”
Mark your calendar with these important 2023 tax deadlines.
— Jan. 17: Fourth quarter estimated tax payments are due for self-employed workers and business owners.
— Late January: Tax season begins and filing opens.
— Feb. 15: Reclaim exemption from withholding.
— April 3: Take your first RMD if you turned 72 in 2022.
— April 18: Tax Day is here.
— April 18: File Form 4868 to request an extension.
— April 18: First quarter 2023 estimated tax payments are due.
— April 18: Last day to contribute to an IRA or HSA for 2022.
— June 15: Second quarter 2023 estimated tax payments are due.
— Sept. 15: Third quarter 2023 estimated tax payments are due.
— Oct. 16: File extended 2022 tax return.
— Dec. 31: Take any RMDs.
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Every 2023 Tax Deadline You Need to Know originally appeared on usnews.com
Update 01/03/23: This story was published at an earlier date and has been updated with new information.
